Nyashadzashe Ndoro
Chief Reporter
Listed hospitality giant Rainbow Tourism Group Limited has announced that it has secured a loan facility from the National Building Society to finance its acquisition of Montclair Hotel and Casino.
The loan facility will cover the purchase price of US$5 million for the entire ordinary share capital of Briolette Services (Pvt) Ltd, which owns Montclair Hotel and Casino.
RTG signed a Share Purchase Agreement for the acquisition on November 20, 2024. The transaction is subject to approval by the Competition and Tariff Commission of Zimbabwe.
The loan from NBS will become payable upon the fulfillment of all conditions precedent. RTG has described the acquisition as a strategic move aligned with the company’s five-year strategy and growth objectives.
The acquisition of Montclair Hotel and Casino is expected to expand RTG’s footprint in the Eastern Highlands, a key tourism and business destination in Zimbabwe. The hotel boasts 85 rooms and has maintained an average occupancy rate of 50% over the past three years.
“The acquisition of Montclair is a strategic move that aligns with RTG’s five-year strategy and growth objectives, enabling RTG to enhance its footprint in the Eastern Highlands, a key tourism and business destination in Zimbabwe. This investment is supported by a robust business case, with clear potential for revenue growth through increased market penetration and the expansion of conferencing and hospitality offerings. By leveraging Montclair’s prime location, RTG will strengthen its competitive position, capitalize on rising demand in the region, and drive long-term value creation,” said Group Company Secretary Tapiwa Mari.
Montclair will also benefit significantly from synergies created by joining the RTG portfolio. Leveraging RTG’s well-established brand equity, the hotel is expected to deliver a seamless, high-quality experience to clients across the group’s resorts and business facilities. This consistency is anticipated to strengthen customer loyalty and attract new clientele, enhancing Montclair’s competitive edge in the market.
Additionally, RTG’s robust marketing and distribution network is expected to elevate Montclair’s visibility, driving increased occupancy and revenue.
RTG has emphasized that the acquisition will create long-term value for shareholders while strengthening the group’s competitive position in the market.
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